Can eco-labels tune a supply chain? The case of MSC-certified haddock from Norway

Summary

It is well established in the literature that fish products with the ecolabel of the Marine Stewardship Council (MSC) obtain price premiums in food retailing compared to non-labeled substitutes. However, premiums vary substantially between species, with the expensive Atlantic cod commanding much higher MSC premiums than low-value species like Alaska pollock, indicating that the most affluent consumers care about sustainability. This study investigates differences in MSC premiums for haddock products of high and low value upstream in the supply chain. Findings show a substantial 14 % price premium for MSC-certified high-end loins and no premiums for lower-value products. Provided that the MSC-premium for high-quality products is shared with fishers, they may be tuned to engage in quality-enhancing fishing practices to land fish of the high quality required for high-end products. The resulting enhanced value creation from limited marine resources can be an added benefit of eco-labeling that goes beyond the certification standard, focusing on sustainable fishery management.